OTTAWA, Jan. 30 /CNW Telbec/ - The Canadian Transportation Agency today
announced a short delay to setting an adjusted volume-related composite price
index for railway revenue caps for the movement of Western grain for crop year
2007-2008. The Agency expects to release its decision as soon as possible in
The adjustment removes the amount of hopper car maintenance costs that
are "embedded" within the revenue caps and replaces it with current, actual
hopper car maintenance costs. While the adjustment reflects a one-time
process, the impact of the adjustment carries forward into future years.
The Agency was to release its decision on or before January 31, 2008,
following consultations on hopper car maintenance with Canadian Pacific
Railway (CPR), Canadian National Railway (CN) and 30 other organizations
including the grain industry and provincial governments. However, very late in
the process, CPR raised a legal issue which the Agency is addressing and as
such has caused the delay. "The Agency remains committed to releasing this
decision as quickly as possible while upholding the rules of due process which
ensure that all parties are dealt with in a fair and equitable manner," said
Geoffrey Hare, Chairman and CEO of the Canadian Transportation Agency.
This index is essentially an inflation factor to cover CN and CPR's price
changes for railway labour, fuel, material and capital inputs. The revenue cap
is a form of economic regulation that enables CN and CPR to set their own
rates for services, provided the total amount collected remains below the
revenue ceilings set by the Agency.
The Canadian Transportation Agency is a Government of Canada
quasi-judicial tribunal with court-like powers and is responsible for helping
achieve an accessible and efficient transportation system. The Agency deals
with, among other things, rate and service complaints arising in the rail
industry; disputes between railway companies and other parties; applications
for certificates of fitness for the proposed construction and operation of
railways; approvals for railway line construction; regulated railway
interswitching rates; and revenue caps for the movement of Western grain by
rail. The Agency also develops costing standards and regulations, and audits
railway companies' accounting and statistics-generating systems.
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